CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACT OF LEASE is made and entered into this ______ day of
____________2019 in the City of Batangas, by and between:

HC TOMSON DEVELOPMENT CORPORATION, a corporation organized and

existing in accordance with Philippine Laws with principal address at D. Silang St.
Batangas City, represented herein by HILTON SY CUA and hereinafter referred to
as the “LESSOR”;
- and -

SOROSORO IBABA DEVELOPMENT COOPERATIVE (SIDC), a duly registered

cooperative under the Development Cooperative Authority (CDA) with business
address at Sorosoro Ibaba, Batangas City, represented by HON. RICO B. GERON
and hereinafter called the “LESSEE”;

WITNESSETH:
WHEREAS, LESSOR is the owner of a parcel of land represented by OCT No. O-
1314, issued by the Land Registration Commission located in the Barangay of Mahabang
Parang, City of Batangas, containing a total area of Nine Thousand Seven Hundred Thirty
Square Meters (9,730), more or less;
WHEREAS, the LESSOR has offered to lease Warehouse 1 km.99, built on a
portion of the said land, and LESSEE is willing to lease the said portion from LESSOR.
NOW, THEREFORE, for and in consideration of the payment of rents and other
sums due hereunder, and the faithful compliance with all the conditions and covenants
hereinafter contained, LESSOR hereby lets unto LESSEE, and the latter does hereby
accept under lease, Warehouse 1 km.99, subject to the following terms, covenants,
conditions and restrictions.

TERM AND THE LEASED PREMISES

1. LEASED PREMISES- The property subject of this agreement is WAREHOUSE 1
with a floor area of 520 square meters square Meters and OFFICE with a floor area of 40
square meters, with a parking area of 130 sq. m. at the side and 80 sq. m. in front of the
warehouse built on a portion of the land represented by OCT No. O-1314.

2. TERM - This lease shall be for a term of 4 (Four) months commencing on

September 1, 2019 and terminating on December 31, 2019 renewable with the same
rental rate upon renewing the contract on the second year. Unless otherwise renewed
under the conditions established hereunder, this lease shall not be deemed extended
beyond the date specified herein for its termination for any reason whatsoever. There shall
be no tacit renewal of this Contract, notwithstanding the continuation of LESSEE in the
possession of the Leased Premises for any length of time after expiration of the term of
this lease.
This lease may be renewed only upon mutual written agreement of LESSOR and
LESSEE provided that, LESSEE shall have faithfully complied with all the terms of this
Contract. LESSEE shall notify LESSOR in writing of its desire to renew the lease at least
sixty (60) days prior to its expiration. In the event that LESSOR and LESSEE are unable
to agree on the terms and conditions prior to the expiry of this lease, then this lease shall
automatically terminate and LESSOR shall be entitled to the rights granted under this
Contract by reason of such termination.

3. RENTAL The rental for the leased premises shall as follows:

Period Amount

Sept. 1, 2018 – Sept. 1, 2019 P62,000.00 per month (VAT exclusive)

4. PAYMENT - The rental mentioned in the foregoing paragraph shall be paid on or

before the 5th day of every month. For this purpose, twelve post-dated checks shall be
issued for every year of this agreement.
5. SECURITY DEPOSITS – The LESSEE has deposited with the LESSOR the
amount of One Hundred Sixteen Thousand Pesos (P116,000.00) representing a security
deposit to secure faithful performance by the LESSEE of all the terms, covenants, and
conditions of this Lease Contract.

The security deposit referred to in this Article shall be forfeited in favor of LESSOR
upon the occurrence of any of the following events: (i) LESSEE fails to occupy the
Leased Premises for the full term of the leased or any extension or renewal thereof, or (ii)
this Contract is terminated by LESSOR for violation of the terms and conditions of this
Contract or whatever reason prior to the expiry date of its term unless such termination on
account of force majeure.

The security deposit shall be returned to LESSEE, without interest, only after the
expiration of the term of this lease and after LESSEE shall have completely and
satisfactorily vacated and delivered the Leased Premises to LESSOR, less whatever
amounts LESSEE may owe LESSOR or which LESSOR may apply against the security
deposit as provided hereunder. It shall be understood, however, that the application of the
security deposit against any unpaid obligations of LESSEE shall be effected only at the
termination of the lease. LESSOR shall, notwithstanding the delivery of the Leased
Premises to LESSOR by LESSEE, have the right to withhold any portion of the security
deposit until LESSOR shall have received statements of account from utility companies
supplying telephone, water, electric power, or public utility services to the Leased
Premises, covering the period ending on the date LESSEE shall have completely vacated
and delivered the Leased Premises to LESSOR. The amount withheld shall answer for
such payment and the remaining amount shall be returned to LESSEE without interest.
Likewise, should LESSEE have any other obligation which remains due and unpaid under
any other contract with LESSOR, LESSOR shall have the right to apply the amount of
these unpaid obligations against the security deposit in settlement upon the termination of
the lease. The LESSEE shall not make keep or store in the leased premises any
explosive or inflammable materials or anything hazardous to health, safety and security or
persons and property.

6. EXTENT OF LEASED PREMISES - LESSOR, shall have the right to cause the
removal of any property belonging to LESSEE found on or within the areas outside of the
Leased Premises and charge the cost of removal, handling and storage to LESSEE.

This provision notwithstanding, the LESSEE may use the areas outside the extent
of the Leased Premises, only upon prior written consent of the LESSOR.

7. USE - The Leased Premises shall be used by the LESSEE exclusively for
commercial storage purposes. LESSEE shall not divert Leased Premises to other uses,
without the prior written consent of LESSOR, it being expressly agreed that if, at any time
during the term of this lease and without the previous written consent of LESSOR, the
said premises are used for purposes other than what has been agreed upon, LESSOR
shall have the right to:
(a) cancel this Contract and LESSOR shall and the thereupon become
entitled to exercise all the rights provided hereunder and/or;
(b) increase the rent; and/or
(c) compel LESSEE to stop the unauthorized activities.

The LESSEE shall not use, or allow the use of the leased premises for any act or
purpose contrary to law, good morals, decency, public order and public policy. The
LESSEE shall not bring, keep, or store in the leased premises any article prohibited by
law, nor shall he allow anyone to bring therein any such article.

8. TAXES - Value-Added Tax, documentary stamp taxes and all other taxes
accruing by reason of the execution of this Contract shall be for the account of LESSEE.

9. INTEREST, PENALTY AND APLICATION OF PAYMENTS - LESSEE shall pay

LESSOR interest on any amount due thereunder which remains unpaid on the date on
which such payment falls due as provided thereunder, at the rate of five percent (5%) per
month. Interest shall be computed from the date payment falls due until payment of the
outstanding account is effected in full.

Interest and penalty charges shall be compounded monthly and shall apply to any
and all amounts which remain unpaid on the due date thereof, including, but not limited to,
unpaid rent, security deposit.

The payment of interest and penalty charges as provided hereunder shall not be
substitute for, and shall be in addition to, the payment of the amount otherwise due
thereunder, and shall not prejudice the exercise by the LESSOR of any other right or
remedy granted to it under this Contract.

10. LIEN - Unpaid rents and charges payable by LESSEE to the LESSOR, or
subsequent renewals under this Contract shall constitute a preferred lien on all personal
properties of LESSEE found or located in the Leased Premises in accordance with
Articles 2241 and 2243 of the Civil Code. For this purpose, LESSOR and/or LESSOR’s
agents are hereby authorized to prevent the removal of the said properties from the
Leased Premises or demand their return from any possession thereof.

11. ASSIGNMENT OR TRANSFER - It is expressly agreed that the nature of

occupancy of the Leased Premises are special considerations for LESSOR’s grant of this
lease to LESSEE. Accordingly, LESSEE shall not assign or transfer its rights under this
Contract, nor sub-lease or any part of the Leased Premises, directly or indirectly, or enter
into any arrangement whereat the use or possession of any part of the Leased Premises
is transferred to any person, irrespective of whether rental or other consideration is given
therefor, without LESSOR’s prior written consent. No right, title or interest to, in and under
this Contract or the Leased Premises shall be deemed conferred or vested in any person
other than LESSEE, to the extent specified herein, without LESSOR’s prior written
consent.
In the event that LESSEE exercises its option to assign the Contract in the manner
specified above, both LESSEE and assignee shall be jointly and solidarily liable for any
and all liabilities which pertain to LESSEE under this Contract.

12. ALTERATIONS, ADDITIONS OR IMPROVEMENTS - LESSEE may introduce

alterations, additions, or improvements within the Leased Premises, only upon prior
written consent of the LESSOR. LESSEE shall give all the notices required and shall
comply with all ordinances, rules and regulations issued by governmental agencies and
public utility companies having jurisdiction over the same.

13. UTILITIES - LESSEE shall pay for water, gas and electricity consumed in the
leased premises, as well as telephone and other utilities used, and janitorial services
rendered therein.
14. INSPECTION PRIOR TO EXPIRY OF LEASE - LESSEE, during the term of the
lease contract shall allow the LESSOR or his authorized representative to inspect the
lease premises.
During the last three (3) months immediately preceding the expiration of the term
of this lease, LESSEE shall allow LESSOR’s authorized representatives and prospective
tenants to inspect the Leased Premises. During such period, LESSOR may exhibit, where
it shall think fit, a notice offering the Leased Premises for lease, which LESSEE shall not
conceal in any way.

15. LIABILITY FOR NON-DELIVERY - If the Leased Premises are not surrendered
at the expiration of the term of this lease, LESSEE shall be responsible to LESSOR for all
damages which the latter may suffer by reason thereof and will indemnify LESSOR
against any and all claims made by any succeeding lessee, resulting from the delay in
delivering possession of the Leased Premises to such succeeding lessee, to the extent
that such delay is occasioned by the failure of LESSEE to surrender the premises on time.
LESSOR shall also be entitled to exercise the remedies as well as all remedies granted by
law.

16. EXPROPRIATION - In the event that the Leased Premises or any part thereof is
expropriated during the period of this lease by any instrumentality of the Government or
any other entity with authority to exercise such power, either party may rescind this
Contract upon giving the other party thirty (30) days’ prior written notice thereof, without
incurring any liability or providing the other party with any basis for an action for damages.
In case of such expropriation, LESSEE hereby unconditionally relieves and releases
LESSOR from any and all liability under this Contract in connection with or arising out of
such expropriation proceedings and agrees that the compensation to be received by
LESSOR shall belong to it wholly as owner of the Leased Premises, without prejudice to
whatever recourse LESSEE may have against the expropriating entity on account of
damage done or caused to it or its properties be reason of such expropriation.

17. INJURY OR DAMAGE TO THIRD PERSONS - The LESSEE hereby assumes full
responsibility for any injury or damage, which may be caused to the persons or properties
of third persons while casually or on business in any part or in the vicinity of the leased
premises and further binds himself to hold the LESSOR free and harmless from any such
claim for injury, or damage.

The LESSOR shall not be liable nor be responsible for:

a. The presence of bug, vermin, and ants or any insects in the leased premises;
or
b. The failure of water supply and/or electric current; or
c. Any article delivered to or left with any of his employees;
d. Any injury, loss or damage which the LESSES, his agents, employees might
sustain in the premises due to any whatsoever, or
e. Any damage caused or occasioned by, or arising from leakage, ruptures, or
defects of plumbing, gas, water, and/or pipes or bursting, lacking or destruction
of any cistern, tank, washstand, water closet or waste pipe in, above, upon or
about the leased premises nor for any damages arising from acts or
negligence of the LESSEE or his/its customers, agents, employees,
representatives or any and all fortuitous events.

18. RULES AND REGULATIONS, ETC. – LESSEE shall comply with all rules and
safety regulations which may be promulgated by the LESSOR from time to time for the
administration of the Leased Premises and its surrounding area, and with all the rules,
regulations, ordinances, and laws made by health or duly constituted authorities of the
city, provincial, or national, government, arising from or regarding the use, occupancy, and
sanitation of the leased premises.

19. NON-WAIVER - The failure of any party to insist upon a strict performance of
any of the terms, conditions and covenants hereof shall not be deemed a relinquishment
or waiver of such terms, conditions or covenants granted to such party, not shall it be
construed as a condonation of any subsequent breach or default of the terms, conditions
and covenants hereof, which terms, conditions and covenants shall continue to be in full
force and effect. The subsequent acceptance of rent by LESSOR shall not be deemed to
be a waiver of any prior breach by LESSEE of any term, covenant and condition for this
lease, regardless of LESSOR’s knowledge of such prior breach at the time of acceptance
of such rent. No waiver by LESSOR of any of its rights under this Contract shall be
deemed to have been made unless expressed in writing and signed by LESSOR.

IN WITNESS WHEREOF, LESSEE and the LESSOR have caused these presents
to be signed:

HC TOMSON SOROSORO IBABA

DEVELOPMENT CORPORATION DEVELOPMENT COOPERATIVE
Lessor Lessee

BY: HILTON SY CUA BY: RICO B. GERON

Signed in the Presence of:

 _____________________ _______________________

REPUBLIC OF THE PHILIPPINES)

CITY OF BATANGAS )SS.

ACKNOWLEDGMENT

BEFORE ME, a Notary Public for and in Batangas City, Philippines, this _____ day
of ________________ personally appeared the following:

NAME IDENTIFICATION DATE/PLACE ISSUED

HILTON SY CUA Driver’s License No. D01-85-006851

RICO B. GERON Driver’s License No. D01-92-066484

Known to me and to me known to be the same persons who executed the

foregoing instrument and each acknowledged to me that the same is their own free and
voluntary acts and deed.

I FURTHER CERTIFY that this instrument consists of FIVE (5) pages including
this page where the Acknowledgment is written, signed by the PARTIES and their
instrumental witnesses on the appropriate spaces provided above and on the left-hand
margins of all other pages.

NOTARY PUBLIC

Doc. No._____;
Page No._____;
Book No._____;
Series of 2019.